Posted by kftaxaccounting2014 on June 23, 2015 in Uncategorized | 4 comments

A lot of activities are common during the summer months, Are you a parent or someone that takes care of a dependent or you know someone that is? This will help you to know there are some tax credit you can get back.

While you work or look for a job during the summer month, any expense you spend on activities on your children or any dependent under the age of 13 may qualify for care credit.

Firstly, you should know your expenses for care has to be work related. You must pay for the care so you can work or look for a job and have a proof of it. Your spouse is also eligible for the care related tax credit if you file a joint tax return and for any month he or she is registered as a full time student or if your spouse is physically or mentally incapable of self-care.

For you to qualify for the care tax credit, earned income is required, wages, salary, tips and any net earnings from self-employment are some of the earned income that may qualify. If you file jointly, your spouse must also have earned income, for any month your spouse is registered as a full time student, your spouse is treated as having earned income or if your spouse is not capable of self-care.

Generally you must file a joint return with your spouse to be qualified for care tax credit, but you can still qualify if you are legally separated or living apart.

The percentage you can get back is dependent on your allowable income, this means that you may be able to get up to 20-35% of your allowable expenses, your allowable expense is limited to $3,000 for one qualifying person or $6000 for two or more. Also irrespective of how you pay for the care, either at home or at a day care facility or day camp you may still qualify.

Lastly, if your spouse is the care provider or the provider is someone you can claim as your dependent, or your child who will be 19 at the end of the year, then you may not qualify for the tax credit. In addition to this, overnight camping and any summer school tutoring does not qualify.

If you need more information on summer tax credit or you need to know if you qualify, Talk to us and we will help you make the right decision!

4 Responses to Children and dependent care tax credit not to overlook this summer

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